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Technology Stocks : Semitool

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To: Dick Roy who wrote (34)3/23/1997 1:25:00 AM
From: Douglas V. Fant   of 75
 
Dick,

I feel that a 25 basis points rate rise is already priced into the market. Indeed I checked two or three annual forecasts for the 30-year bond such as S&P Reports, and they all feel that the 30-year bond will trade in 1997 in a range of 6.25% to 7.25%. Now if we got a 50 basis points increase in the prime lending rate, then I think we'd roll over and "die".

I've traded network stocks for some time, and have only traded equipment stocks for about 18 months; but equipment stocks seem to bounce around nicely within fairly wide (15-20% swings) price ranges, so there appears to be some short-term trading possibilities, even in your "core holding" stocks.... I can't do that too much, as unfortunately my job "interferes with" my stock trading, ha!

Sincerely,

Doug F.
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